Legendary investor Warren Buffett has smart estate-planning advice for all parents, regardless of their wealth level: Let your adult children read your will before you sign it.
In a revealing November 2024 letter to shareholders, the Berkshire Hathaway (BRK.A) CEO explained that this simple act could prevent family conflicts and strengthen relationships after a parent’s death.
“Over the years, I have had questions or commentary from all three of my children and have
often adopted their suggestions,” Buffett wrote. “There is nothing wrong with my having to defend my thoughts. My dad did the same with me.”
Key Takeaways
- Warren Buffett recommends letting adult children review your will before signing it to ensure they understand your decisions and their future responsibilities.
- Buffett said he takes questions and comments from his three children and has often adopted their suggestions when updating his will.
- Open discussions about inheritance plans can prevent family conflicts and jealousies that often arise after a parent’s death.
Why Sharing Your Will Matters
Buffett’s advice stems from decades of observing families torn apart by unexpected or confusing inheritance decisions. When children discover the contents of a will only after their parent’s death, questions about fairness and childhood memories of favoritism can surface, potentially damaging sibling relationships forever.
“While it’s important to have well-written estate documents, we see most estate planning go awry because of emotional issues,” Mitchell Kraus, a certified financial planner at Capital Intelligence Associates, told Investopedia. “For most families, the best way to make sure there aren’t fights after death is to have cross-generational conversations.”
Buffett said parents should be prepared to defend their choices and listen to their children’s input while they are still alive—just as his father did with him.
Buffett has been candid about his views on limiting generational wealth transfers through inheritance. “I’ve never wished to create a dynasty or pursue any plan that extended beyond the children,” he wrote in the November 2024 letter, explaining his “belief that hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing.”
Making Changes and Taking Feedback
The “Oracle of Omaha” practices what he preaches. He said he updates his will every couple of years, sometimes making minor adjustments based on conversations with his three children. He said this has helped his family maintain strong relationships while managing the responsibilities that come with inheriting significant wealth. Indeed, Buffett believes that discussing inheritance plans openly can help families grow closer rather than drift apart.
“Be sure each child understands both the logic for your decisions and the responsibilities they will encounter upon your death,” Buffett wrote. “If any have questions or suggestions, listen carefully and adopt those found sensible. You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond.”
Up to 3% of wills are contested in the United States. Will contests can be emotionally devastating and financially draining for families. Legal battles over inheritances can take years to resolve in probate court and can cost thousands of dollars in legal fees.
The Bottom Line
“The biggest stumbling block is often older generations not wanting to address that there might be problems,” Kraus said. Buffett suggests that parents disclose their wills to their children before finalizing them to prevent future family conflict. This reflects his broader beliefs about inheritance management and family communication: Parents who openly discuss such decisions and solicit input from their adult children can avoid misunderstandings and build stronger family connections while ensuring their wishes are well understood.
Buffett’s estate planning strategy can be a chance for meaningful family discussions instead of potential discord. But what if your family relations are already pretty heated? The professionals have a way to deal with that, too. “For more dysfunctional families,” Kraus said, “we recommend professionals who will run family meetings and make sure things do not get out of control.”
:max_bytes(150000):strip_icc()/GettyImages-534941738-aa7ab981ec9347d08d8b0f0c4dcb3c05.jpg?w=1200&resize=1200,0&ssl=1&description=What+Warren+Buffett+Wants+Every+Parent+to+Do+With+Their+Will+Before+It%E2%80%99s+Too+Late){kind=link}